Bitcoin (BTC) price touched the $39k threshold on the previous day, the highest level in the last two weeks. But, the traders are not confident to sustain the momentum as a result BTC trades in a very tight range with negative returns in today’s session.
- Bitcoin (BTC) fails to capitalize on the previous session’s gain on Wednesday.
- As per the options data, $39k emerges at the MAX pain area for traders.
- Bitcoin retreats after touching highest in two weeks indicating the coin is not of woods yet.
At the press time, BTC/USD is trading at $38,525, down 0.50% for the day. As per the CoinMarketCap, the 24-hour trading volume is down 3.27% at $20,525,274,522.
Bitcoin Options Demand More Put than Calls
Arcane Research in its report revealed that options traders are betting on put options over calls. But are not sure of the next movement and the price largely remained perplexed near the higher levels. As reported, the implied volatility is low, which means there is less upward or downward price movement for Bitcoin.
The MAX pain area is placed at $39k, thus making it a crucial level to trade. MAX pain area is where option owners (buyers) feel “maximum” pain or the chances of losing money is maximum by the bulls. On the other hand, option seller stands to reap the maximum gains.
A pennate formation on the daily chart signals Bears is on top!
On the daily chart, the formation of ‘Pennate’ formation indicates the continuation of the prevailing trend. If the price breakout the lower trend line of the channel then the next destination for the bears is at $32,933.33.
Next, the market participant will set their eyes on the lows last seen in July at $29,301.56.
The momentum oscillator, daily relative strength index (RSI) trades at 40 with a neutral stance. Any uptick in the indicator could help the bulls to place their bets. The first immediate upside target is placed at $40k.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/bitcoin-btc-price-analysis-option-data-skewed-in-favour-of-bears/